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SB 762

Lottery, Corporation - As introduced, requires each county to levy a tax at the rate of 5 percent of the sales price of lottery tickets or shares when sold at retail within the jurisdiction of the county; requires the state to administer the collection of the tax. - Amends TCA Title 4; Title 5; Title 6; Title 7; Title 9; Title 49 and Title 67.

114th Regular Session (2025-2026) Introduced by Ken Yager

SB 762 imposes a 5 percent county-level tax on lottery ticket sales, with state administration of collection and potential impacts on local revenue and lottery participation.

Assigned to General Subcommittee of Senate State & Local Government Committee
#corporation #lottery
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Bill Summary · SB 762

Legislative bill overview

SB 762 would impose a 5 percent tax on lottery ticket sales at the county level, with the state handling tax collection and administration. The bill amends multiple sections of Tennessee Code to establish this new revenue mechanism and adjust related regulations across state and local government structures.

Why is this important

This bill would create a new revenue stream for counties from an existing consumer activity, potentially generating substantial funds for local governments without raising income or sales taxes. It represents a shift in how lottery proceeds are distributed and could affect both county budgets and lottery participation rates depending on implementation details.

Potential points of contention

  • Regressivity concerns: Lottery taxes disproportionately affect lower-income households, who spend a larger percentage of income on lottery tickets, raising equity questions about funding mechanisms
  • Lottery participation impact: A 5 percent price increase could reduce ticket sales and lottery revenue overall, potentially offsetting intended tax collection and affecting state education funding (if lottery funds support schools)
  • Administrative burden and complexity: Requiring counties to levy and states to collect creates a dual-layer tax system that could increase compliance costs for retailers and administrative overhead
  • Consistency across jurisdictions: County-by-county implementation may create disparities in tax rates and consumer behavior across state lines, complicating compliance for multi-state operators

Compiled from official sources — confirm details with the bill’s official record.

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